In a notable move, Coinbase, a major cryptocurrency exchange, has introduced support for Jito (JTO), a newly launched token on the Solana network.
This addition to the trading platform is a substantial development for the Solana ecosystem, underscoring its expanding presence and resurgence in the cryptocurrency market. Coinbase’s decision to back JTO as an SPL (Solana Program Library) token signals a positive outlook for the Solana network’s growth and adoption.
Coinbase Introduces Jito (JTO) Trading with Cautionary Measures
Coinbase users are encouraged to conduct JTO token transfers exclusively within the Solana network to mitigate potential fund losses. The commencement of JTO trading, scheduled for 11 AM ET today, is contingent on meeting necessary liquidity conditions.
The phased rollout of JTO-USD trading pairs will follow once an ample asset supply is secured. However, certain jurisdictions may experience restrictions on JTO access despite general support on the platform.
It’s noteworthy that Coinbase has classified JTO with an ‘experimental’ tag, signaling a cautious approach for potential traders.
Solana weekly active addresses. Source: X/@0xallyzach
Concurrently, the Solana network is displaying signs of a resurgence. According to Messari data, weekly active addresses on Solana have rebounded to pre-FTX collapse levels. This growth is attributed to the development of new infrastructure and tools, including compressed NFTs, fostering diverse consumer applications on the platform.
Solana’s Ongoing Revival and Challenges Amid Positive Trends
While Solana exhibits positive trends and a resurgence in DeFi activity, it continues to lag behind Ethereum in overall activity. A 47% increase in Solana’s TVL (total value locked) since November, reaching $1.19 billion, reflects the impact of DeFi activities and airdrop announcements.
New token launches, like Jito on Coinbase, contribute significantly to boosting market caps and exchange TVL. This strategy attracts users by presenting trading potential with these tokens, as highlighted by analyst Ally Zach from Messari.
However, the Solana ecosystem faces challenges despite its recovery in the DeFi sector. The TVL is still 89% below its peak of nearly $10 billion from two years ago.
Solana network total value locked TVL. Source: DefiLlama
Regarding Solana’s native token, SOL, the market outlook remains cautiously optimistic. SOL has seen a notable 55% increase in the past month, outperforming Bitcoin. Yet, analysts anticipate a potential pullback, and SOL is still 76% below its all-time high, emphasizing the cautious approach to its market dynamics.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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